German MVNO to undercut T-Mobile with 600 euro iPhone rebate

German mobile virtual network operator (MVNO) Debitel said Tuesday it plans to offer a 600 euro ($891) rebate to customers who buy an iPhone from T-Mobile Germany but agree to use its wireless service instead, undermining much of T-Mobile's competitive advantage.

Reutersreports that Debitel — which resells airtime it buys from T-Mobile and rivals Vodafone, O2, and E-Plus in Germany — said it has no qualms about paying the difference in price between an unlocked iPhone and one locked to T-Mobile's network if it means gaining new subscribers.

Although T-Mobile had landed an exclusive deal with Apple to sell the iPhone in Germany, it was ordered by a Hamburg court last week to offer customers an option to buy an unlocked version of the handset that would not require a formal two-year contract and could be used other wireless networks in the country.

T-Mobile and Apple agreed to comply, but did so by pricing the unlocked iPhone at a whopping 999 euros in order to deter consumers from forgoing a T-Mobile contract. The two firms charge less than half that — 399 euros — for an iPhone tethered to the T-Mobile network.

In a statement, Debitel said it would begin offering through its stores on Wednesday iPhone contracts starting at 40 euros per month for 200 minutes, which is cheaper than T-Mobile's baseline plan of 49 euros for half as many minutes.

"We are happy to offer iPhone buyers the freedom of choice that customers are entitled to expect from a service provider," said Oliver Steil, Debitel's marketing chief.

Debitel added that customers using Vodafone, E-Plus and O2 networks would get all of Apple's iPhone services apart from visual voicemail which will continue to function only on T-Mobile's network.

German mobile virtual network operator (MVNO) Debitel said Tuesday it plans to offer a 600 euro ($891) rebate to customers who buy an iPhone from T-Mobile Germany but agree to use its wireless service instead, undermining much of T-Mobile's competitive advantage.

Reuters reports that Debitel -- which resells airtime it buys from T-Mobile and rivals Vodafone, O2, and E-Plus in Germany -- said it has no qualms about paying the difference in price between an unlocked iPhone and one locked to T-Mobile's network if it means gaining new subscribers.

Although T-Mobile had landed an exclusive deal with Apple to sell the iPhone in Germany, it was ordered by a Hamburg court last week to offer customers an option to buy an unlocked version of the handset that would not require a formal two-year contract and could be used other wireless networks in the country.

T-Mobile and Apple agreed to comply, but did so by pricing the unlocked iPhone at a whopping 999 euros in order to deter consumers from forgoing a T-Mobile contract. The two firms charge less than half that -- 399 euros -- for an iPhone tethered to the T-Mobile network.

In a statement, Debitel said it would begin offering through its stores on Wednesday iPhone contracts starting at 40 euros per month for 200 minutes, which is cheaper than T-Mobile's baseline plan of 49 euros for half as many minutes.

"We are happy to offer iPhone buyers the freedom of choice that customers are entitled to expect from a service provider," said Oliver Steil, Debitel's marketing chief.

Debitel added that customers using Vodafone, E-Plus and O2 networks would get all of Apple's iPhone services apart from visual voicemail which will continue to function only on T-Mobile's network.

40 Euros for 200 minutes beating T-Mobiles 49 Euros for half the minutes, all for gaining a new subscriber by paying $891.00 US Dollars to get them in the first place - sounds like a winner - what kind of commitment do these new subscribers need to make so
Debitel can recoup their money? What about other services data, visual voicemail, etc.?

40 Euros for 200 minutes beating T-Mobiles 49 Euros for half the minutes, all for gaining a new subscriber by paying $891.00 US Dollars to get them in the first place - sounds like a winner - what kind of commitment do these new subscribers need to make so
Debitel can recoup their money? What about other services data, visual voicemail, etc.?

Sound Business Plan on Debitel's behalf!

Wonder if T-Mobile will match rebate or sue for loss of revunue?

600 / 40 = 15

That means that Debitel isn't making anything until after 15 months if no additional services are had. And Apple really makes out as they are now getting paid upfront for the iPhone and at an inflated rate.

40 Euros for 200 minutes beating T-Mobiles 49 Euros for half the minutes, all for gaining a new subscriber by paying $891.00 US Dollars to get them in the first place - sounds like a winner - what kind of commitment do these new subscribers need to make so
Debitel can recoup their money? What about other services data, visual voicemail, etc.?

Sound Business Plan on Debitel's behalf!

Wonder if T-Mobile will match rebate or sue for loss of revunue?

Commitment! Ha!

Seriously though, this is the reason why you let the free market take care of these problems instead of the idiot governments. Everyone wins. T-Mobile gets their cash, Apple gets whatever percentage of that 999 euro that was coming to it. Debitel gets a new customer (who will almost surely be a money loser for them). It's a perfect solution that no one should complain about.

Debitel added that customers using Vodafone, E-Plus and O2 networks would get all of Apple's iPhone services apart from visual voicemail which will continue to function only on T-Mobile's network.

Is visual voicemail something that the other carriers could implement on their own (if there were enough iPhone users in their network to make it worthwhile)? Or is it something they would have to work with Apple to provide?

I assume that Apple has patent protection on phones with visual voicemail, but I don't know if that would extend to the wireless providers technology...

Seriously though, this is the reason why you let the free market take care of these problems instead of the idiot governments. Everyone wins. T-Mobile gets their cash, Apple gets whatever percentage of that 999 euro that was coming to it. Debitel gets a new customer (who will almost surely be a money loser for them). It's a perfect solution that no one should complain about.

See how that differs from the other solutions out so far?

Yeah, except that it was idiot government intervention that even allowed this to happen. Without it, we would have been stuck with t-mobile only. It seems to me this is a case of the government ensuring a free market.

Yeah, except that it was idiot government intervention that even allowed this to happen. Without it, we would have been stuck with t-mobile only. It seems to me this is a case of the government ensuring a free market.

exactly

and Debitel is probably just investing in free publicity by the press... how many of you guys even knew they existed in the first place?

and Debitel is probably just investing in free publicity by the press... how many of you guys even knew they existed in the first place?

If I had to name a virtual provider in Germany, I could only come up with Debitel (even before today). They might not be the biggest (I really don't know) but they have been one of the first and have been around since the beginning of GSM.

If I had to name a virtual provider in Germany, I could only come up with Debitel (even before today). They might not be the biggest (I really don't know) but they have been one of the first and have been around since the beginning of GSM.

well, how's their market? how many subscribers? what are their present goals and future plans?

and: how's the competition between a virtual provider and a regular(?) one? because they might use this kind of free publicity and great offerings (iphone rebate) to compensate for a lack of confidence in their network/service and/or a lack of better services in comparison with other competitors..

i dunno, i'm just throwing some ideas here to see if we get what this apparently incredible offer from Debitel is really about...

Yeah, except that it was idiot government intervention that even allowed this to happen. Without it, we would have been stuck with t-mobile only. It seems to me this is a case of the government ensuring a free market.

The iPhone is not a market, it is a single device in a market. The actual German cell market has multiple service providers which offer dozens of choices of devices, and consumers are free to choose amongst any available combination offered.

So please explain to me what this whining about exclusive service providers for a particular device has anything to do with the freedom of the market at large. A free market simply implies that buyers and sellers are free to trade goods, services and money through consensual agreement without force or coercion. Nobody is forcing Germans to buy an iPhone, but apparently they want to be able to force Apple to sell them one on their terms, and theirs alone. Fine, it's your country, you can do what you like. But don't misrepresent your intentions as being some noble protection of the "free market."